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CHAPTER 2

The entrepreneur
Melodi Botha

LEARNING OUTCOMES
• Understand the effects of entrepreneurship on the
economy
• Appreciate that entrepreneurs can conduct business at
various levels based on their entrepreneurial activities
• Understand that entrepreneurs have unique
characteristics that distinguish them from other
individuals
• Know that there exist certain types of networks and
support systems available to entrepreneurs

© Van Schaik Publishers

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LEARNING OUTCOMES
• Understand that there are challenges that entrepreneurs
and SMMEs must overcome
• Acknowledge women and emerging entrepreneurs and the
role they play in the economy
• Differentiate between opportunity and necessity
entrepreneurship
• Understand the relationship between entrepreneurship and
other upcoming industries
• Understand that entrepreneurship must be initiated in
schools and universities to make the youth more aware of
entrepreneurship as a career option
© Van Schaik Publishers

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INTRODUCTION
•
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•

Entrepreneur: a catalyst of business
Role of entrepreneurs in the economy
Barriers and challenges facing entrepreneurs
Background and characteristics of
entrepreneurs
Role models and support systems
Push and pull factors of entrepreneurship
Women (female) entrepreneurs
Minority entrepreneurs
Entrepreneurs vs
...

According to research by Driver at el (2001)
– Personal values = desirable values that promote
entre
...
are found
bwt 35 – 54 age category, from 143 entre
...
from employment base
© Van Schaik Publishers

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BACKGROUND AND
CHARACTERISTICS OF
ENTREPRENEURS
•Characteristics
- Passion
- Locus of control
- Need for independence
- Need for achievement
- Risk taking and uncertainty
- Creativity and innovation
- Determination and persistence
© Van Schaik Publishers

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ROLE MODELS AND
SUPPORT SYSTEMS
• Business Women’s Association
• Entrepreneurial networking and types of
networks:
– Social networks
– Personal networks
– Extended networks
– Other
© Van Schaik Publishers

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PUSH AND PULL FACTORS OF
ENTREPRENEURSHIP
• Push factors
• (necessity)

– Unemployment
– Job insecurity
– Disagreement with
management
– Does not “fit into” the
organisation
– Limitations of financial
rewards from
conventional jobs
– No other alternatives
© Van Schaik Publishers

• Pull factors
(opportunity)

Chapter 2

–
–
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Independence
Achievement
Recognition
Personal development
Personal wealth

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© Van Schaik Publishers

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WOMEN AND EMERGING ENTREPRENEURS
•

A successful women entrepreneur is one who has been in business
for longer than two years, operated an enterprise with more than five
employees and less than 30, made a profit and expanded in terms of
infrastructure and growth
...

• Acceptance of traditional gender roles = culturally presumed
roles
–
–
–
–

• Types of women entrepreneurs
Traditional women business owners
Innovative women business owners
Domestic women business owners
Radical women business owners
© Van Schaik Publishers

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© Van Schaik Publishers

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BARRIERS FACING WOMEN
ENTREPRENEURS
• Access to financial resources
• Lack of support
• Balancing business and family
responsibilities
• Negative prevailing socio-cultural attitude
• Gender discrimination and bias
• Lack of training and education
• Personal difficulties
© Van Schaik Publishers

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CHALLENGES FACING
ENTREPRENEURS AND
SMME’S IN SOUTH AFRICA
• Access to start-up and expansion
finance
• Access to markets
• Access to appropriate technology
• Access to human resources
© Van Schaik Publishers

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© Van Schaik Publishers

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EMERGING
ENTREPRENEURS

• Characteristics of informal and survivalist
environment
–
–
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–

Mostly from rural areas
No running water and electricity
Most diversified sector of the economy
The level of formal education is very low
Economic activities are very low
Demographically, it is the most impoverished
environment
– Live in shacks and mud houses
© Van Schaik Publishers

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ENTREPRENEURSHIP AND
CERTAIN INDUSTRIES OR
SECTORS
• Technology entrepreneurs
(Technopreneurs)
• Social entrepreneurs
• Tourism entrepreneurs
– Opportunities: accommodation sector of industry,
transport industry and man-made attractions

© Van Schaik Publishers

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ENTREPRENEURS VS
INVENTORS
• Role of entrepreneurs and inventors
• Ongoing relationship and process
• Inventor definition: Someone who has
developed an innovation and who has decided
to make a career out of presenting that
innovation to the market
• Entrepreneur takes over from inventor
• Inventors highly creative but relatively
few management skills
© Van Schaik Publishers

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CONCLUSION
• Entrepreneurship: key driver of
economic growth and development in
South Africa
• Create environments where business will
thrive
• Effective internal people management
• Chinese saying: “Success depends on
good timing, a proper environment and
people in harmony

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